An Empirical Analysis On The Relationship Between The Ownership Structure And Operating Performance After Share Reform

Equity structure is the foundation and core of corporate governance, which plays a decisive role in the distribution of control right and ownership in the company, and can affect the company’s operating performance through entrust-agency mechanism, incentives and supervision mechanism. Optimizing the equity structure configuration is powerful in improving the efficiency of the governance of listed companies, and enhancing the company’s operating performance. The study on relationship between equity structure of listed companies and corporate operating performance has always been the classic topic, the scholars of home and abroad had done lots of researches. However, many research results have not formed a uniform conclusion because of the difference of the study samples, variable selection, research methods and others. Therefore, currently, empirical analysis on the relationship of ownership structure and company operating performance has important theoretical value and practice guiding significance.In our country, from the establishment of Shanghai and Shenzhen Stock Exchanges to now, the listed company has achieved rapid development in all aspects. In order to solve the unreasonable equity problem in the development, the equity division reform of the shares was officially launched in April2005.So, after equity division reform is implemented, what changes have taken place of the ownership structure of China’s listed companies and how about the changes of the relationship between the ownership structure of china’s listed companies and operating performance under the special market environment in china. This article attempts to conduct an empirical analysis in-depth on the relationship between ownership structure and operating performance of listed companies after the split share structure reform.This paper follows three logical lines, the theoretical, demonstration and policy, taking the separation of ownership theory, the property rights theory, the principal-agent theory and stakeholder theory as the theoretical basis. After reviewing and summarizing the relevant theory, literature and other research findings of domestic and foreign scholars on this issue, we select701companies as study sample according to certain criteria, which come from all A shares listed companies of Shanghai and Shenzhen stock market between2006-2010, then use factor analysis to refine the15financial indicators of these companies and obtain the company’s comprehensive operating performance. Next, the article conduct regression analysis of the relationship between ownership structure and business performance in-depth from the two different angle of equity constitute and ownership concentration respectively, and make a further comparative analysis on the relationship between equity structure and operating performance of the listed company from the three aspects of competition in the industry, geographic differences and different levels of economic development. Based on the above analysis results, this paper proposes some suggestions to improve China’s listed company structure and enhance the operational performance.